Shares of Maruti Suzuki India fell nearly 2 percent on Monday amid overall weak market sentiment as investors ignored the company's efforts to strengthen its SUV portfolio with new launches.
The stock fell as much as 1.71 percent to Rs 7,798.90 per share on the BSE in early trade. However, it pared losses, trading 0.33 percent lower at Rs 7,908 per share at 1:30 PM. The stock outperformed the sector by 1.57 percent.
While the auto maker is the undisputed leader in the passenger vehicle market, the company lags behind other players in the Sports Utility Vehicle (SUV) segment.
The market leader, which only has around 12 percent market share in SUVs, is looking to make its position stronger in the fastest growing segment with about eight launches in the next two years, as per reports. Of these, around three car launches are expected in the next few months starting with Vitara Brezza to be out by the end of this month.
Apart from this, the company also plans to launch a new product in the Multi Utility Vehicle (MUV) segment.
The company enjoyed market share anywhere between 50 and 97 percent in all other segments as of March 31.
While the investors didn't seem too impressed, the company’s slew of new launches has turned brokerages positive on the stock.
UBS has a 'buy' rating on the stock with a target price of Rs 10,000 per share. UBS said the reason behind its 26 percent upside in the target price as compared to current market price is the product pipeline.
HDFC Securities has an 'add' call on Maruti Suzuki India with a target price of Rs 8,412.
First Published: Jun 13, 2022 2:34 PM IST
